Budget 2026-27: Stationery items may face higher sales tax under proposed measures

ISLAMABAD: Stationery items are expected to become more expensive from July 1, 2026, as the federal government is considering increasing the sales tax on such goods from 10 per cent to 18pc under the upcoming Finance Bill 2026-27.

The plan is part of a broader fiscal package designed to widen the tax base and enhance the collection of taxes, according to official sources. The shift is also said to be in step with current talks with international financial institutions on tax rationalisation and elimination of concessional rates.

The proposed rate will be used for items such as notebooks, registers, pens, pencils, paper goods and other basic school and office supplies. The measure will directly affect expenditure on education and operational costs of offices.

As stationery items are widely used in educational and administrative work all over the country, the proposed change is likely to have the greatest impact on students and middle-income families.

The new sales tax rate will be implemented on July 1, 2026.

The Budget 2026-27 is due in the National Assembly on June 10, meanwhile. The budget session will start at 5pm, and Finance Minister Muhammad Aurangzeb will present the federal budget proposals.

Apart from taxation, the government is also considering more comprehensive tariff reforms in the National Tariff Policy (2025–30) that will help support industrial development and enhance trade competitiveness.

Some of the changes involve proposals to remove duties on reefer containers and semi-trailers to facilitate the logistics sector and improve supply chain efficiency, officials said. Import duties will also be lowered or removed on some medicine raw materials, including cancer drugs, in order to boost domestic production and bring essential drugs within reach of the people.

Further details are expected when the federal budget is formally presented next week.